Impact Minerals Limited: Share Purchase Plan to Raise Up to $4 Million

Perth - Impact Minerals Ltd. (Impact or the Company) (ASX:IPT) is pleased to announce a Share Purchase Plan (SPP Offer) for the offer of 222,300,000 new fully paid ordinary shares (New Shares) to raise up to approximately $4.0 Million to drive further exploration at its high grade and prospective Commonwealth gold-silver-base metals project near Orange in New South Wales.

- Existing Eligible Shareholders are invited to participate in a Share Purchase Plan for up to 222,300,000 New Shares to raise up to $4.0 Million.

- Three free attaching Listed Options for every two New Shares subscribed for.

- Funds to be used for major drilling campaign at the Commonwealth gold-silver-base metals project in New South Wales and follow up work at Broken Hill.

The SPP Offer will offer New Shares to each individual who was registered as an Impact shareholder as at 5:00pm (WST) on 10 May 2017, at an issue price of 1.8 cents per share, being the 5 day volume weighted price of Impact's shares on the ASX.

Eligible shareholders will be able to subscribe for up to $15,000 of New Shares, without incurring brokerage or other transaction costs. Eligible shareholders will also be offered three free attaching listed options (Free Attaching Options) exercisable at $0.04 with an expiry date of 15 June 2020 for every two New Shares subscribed for.

Shareholders and other eligible individuals (refer below) will also be able to apply for any New Shares and Free Attaching Options not subscribed for under the SPP Offer. This will form part of a Shortfall Offer (Shortfall Offer).

Impact Minerals' Managing Director, Dr Mike Jones:

"This is a significant opportunity for existing shareholders to increase their participation in upcoming drill programmes at the Company's emerging Commonwealth project, where we will start drilling in June, as well as at our Broken Hill copper-nickel-PGM project. Both projects have already delivered exceptional high grade drill results that require follow up work as well as numerous new drill targets from our ongoing work."

"I believe the targets we are going to drill have exceptional merit and I will be taking up my full allocation of shares."

Purpose of the capital raising

In 2016 Impact made a high grade gold-silver discovery at the Silica Hill Prospect at the Company's 100% owned Commonwealth gold-silver-base metal project 100 metres north of the known resource at Main Shaft. Drilling has returned both high grades of gold and very high grades of silver in a geological environment similar to the significant Eskay Creek deposit in Canada (4 million ounces of gold and 180 million ounces of silver; see announcements dated 22 February 2017, 21 April 2017 and 9 May 2017).

Impact has identified numerous targets along trend, at depth and in the surrounding area that require drill testing. The funds raised from the SPP Offer will be used to help fund a drill programme of up to 3,000 metres of reverse circulation and diamond drilling to test these targets.

In addition, funds will be used for follow up work including drilling at the high grade Broken Hill coppernickel- PGM project where a recent VTEM survey has identified new targets for follow up work and where follow up drilling is required at the Red Hill and Platinum Springs Prospects which have returned exceptional grades of platinum group metals nickel and copper.

Details of the SPP Offer

The SPP Offer is only available to Australian and New Zealand shareholders who were registered as Impact shareholders at 5:00pm (WST) on 10 May 2017 (Eligible Shareholders).

Eligible Shareholders will be able to purchase parcels of new fully paid ordinary shares valued at $1,000, $3,000, $5,000, $10,000 or $15,000 at an issue price of 1.8 cents per share, without incurring brokerage or transaction costs. The SPP Offer is intended to raise up to approximately $4.0 Million. Eligible shareholders will also be offered three free attaching options exercisable at $0.04 with an expiry date of 15 June 2020 for every two New Shares subscribed for.

Any New Shares and Free Attaching Options not subscribed for under the SPP Offer will form a Shortfall and will be offered under a Shortfall Offer (Shortfall Offer). An individual, including an Eligible Shareholder, may apply for additional New Shares and Free Attaching Options under the Shortfall Offer provided they are eligible under all applicable securities laws to receive an offer under the Shortfall Offer.

The Directors reserve the right to place some or all of any New Shares and Free Attaching Options which have not been applied for under the SPP Offer or Shortfall Offer, within 3 months of the close of the Offers.

The SPP Offer is currently scheduled to close on 9 June 2017. However, Impact reserves the right to close the SPP Offer at any time depending on demand for shares. Eligible Shareholders are therefore encouraged to lodge their applications well ahead of the advertised closing date of 9 June 2017. All New Shares issued under the SPP Offer and Shortfall Offer will rank equally with existing ordinary fully paid shares in the Company.

The Board intends to seek Shareholder approval for the purposes of ASX Listing Rule 7.1 for the issue of the New Shares and Free Attaching Options the subject of the SPP Offer and the Shortfall Offer, and for the placement of any remaining shortfall to the SPP Offer and Shortfall Offer, during the three (3) months after the General Meeting (or a longer period of allowed by the ASX), without using the Company's 15% placement capacity.

The Company advises it is awaiting regulatory approval of the required documentation. Full details of the SPP Offer and Shortfall Offer will be contained in a prospectus which is scheduled to be dispatched to Eligible Shareholders on 19 May 2017.

Key dates

The proposed timetable for the SPP and Shortfall Offer is set out below, however the Directors reserve the right to vary the dates and times without notice.

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Event                                             Date
Record Date (date for determining 
Shareholders' entitlements to participate 
in SPP Offer) (5:00 WST)                          10 May 2017
Announcement of SPP Offer                         11 May 2017
Lodgement of Prospectus with ASIC                 15 May 2017
Despatch of Prospectus and Opening Date 
of SPP Offer and Shortfall Offer                  19 May 2017
Closing Date for SPP Offer (5:00 WST)             9 June 2017
Closing Date for Shortfall Offer (5:00 WST)       16 June 2017
General Meeting                                   20 June 2017
Issue of Offer Securities                         21 June 2017
Quotation of Securities                           22 June 2017
Despatch of Holding Statements 
for New Shares and Options                        23 June 2017 
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About Impact Minerals Limited:

Impact Minerals Ltd. (ASX:IPT) is an exploration company listed on the ASX in November 2006. The Company manages extensive tenement holdings (>2,000 km2) within Australia featuring significant potential for high-grade mineral deposits of gold, silver, lead, zinc, copper, nickel and PGM’s.

The Directors of the Company have extensive experience in mineral exploration and a strong history of exploration success, business development and corporate management. Impact Minerals intends to build wealth for its shareholders through a vigorous campaign of project generation and evaluation with a view towards profitable mining operations.



Contact:

Dr Mike Jones Managing Director
Impact Minerals Ltd.
T: +61-8-6454-6666